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EURJPY slides for a second day as yen strengthens on hawkish BOJ talk
The pair is down about 1.3% on the day and has retraced more than 61.8% of a prior recovery leg, with 180 and 179.36 in focus.
EURJPY extended its selloff for a second straight session, falling about 1.3% in Asian and European trading on Thursday and giving back more than 2% over the move so far, according to Action Forex.
The yen’s strength was driven by a hawkish narrative from Japanese officials that points to a faster pace of Bank of Japan rate hikes, with the article noting that analysts are sidelining a scenario for another yen intervention after the currency lost much of its gains following a late July intervention.
Action Forex said the move has retraced more than 61.8% of the 179.36 to 186.02 recovery leg, with a technical target around 180.93 tied to the 76.4% level.
Near-term trading is described as turning bearish on daily charts, though oversold conditions could make it harder for further downside to accelerate, the piece added, pointing to support near the top of an ascending weekly Ichimoku cloud around 181.70 and key downside levels at the 180 psychological area and 179.36.